The Money Laundering Reporting Officer (MLRO) is one of the most important roles in any regulated firm, yet it’s often misunderstood. The MLRO isn’t just a “reporting point” for suspicious activity; they’re the central link between the firm’s operational teams, senior management, and the regulator.
Under the Money Laundering Regulations 2017 and SYSC 6.3 of the FCA Handbook, every firm must appoint a nominated officer with overall responsibility for AML compliance. The MLRO’s core duty is to ensure that the firm’s systems and controls are effective in preventing and detecting financial crime, and that any suspicions are properly escalated and reported to the National Crime Agency (NCA) when appropriate.
In practice, the MLRO’s job is as much about culture as it is about policy. They need to embed awareness, encourage challenge, and support staff in making sound, risk-based decisions.
A good MLRO combines regulatory knowledge with pragmatism. They understand the business model, communicate clearly, and can explain to both the board and regulators why the firm’s approach is reasonable and proportionate.
In short: the MLRO isn’t just the “person who files SARs.” They’re the compliance conscience of the firm, ensuring that financial crime risks are understood, managed, and reported with integrity.
